How to Forecast Your Expenses in Retirement - 406

Your Money, Your Wealth

Realestate, Income, Investing, Personalfinance, 401k, Rothconversion, Retirement, Education, Taxes, Socialsecurity, Personalfinances, Finance, Retirementplanning, Investments, Stocks, Business, Roth, Fiduciary, Ira

2.3 • 681 Ratings

🗓️ 29 November 2022

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

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Summary

What will you actually need to spend in retirement? Joe and Big Al explain how to really think about and calculate your retirement expenses. Plus, if you want to reduce your tax-deferred account balances, does it make more sense to do Roth conversions or reinvest? What about doing Roth conversions to a higher tax bracket than the one you’ll be in during retirement? Also, the fellas explain the alternative minimum tax, how Social Security spousal benefits work, and when in the year you turn 72 you must take required minimum distributions from your retirement accounts. And finally, what should someone with no credit history who hasn’t paid taxes do with a sudden $100,000 windfall? Show notes, free financial resources, transcript, Ask Joe & Big Al On Air: https://bit.ly/ymyw-406

Transcript

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0:00.0	What will you actually need to spend in retirement?
0:03.0	Today on Your Money, Your Wealth podcast number 406,
0:06.0	Joe and Big Al explain how to really think about and calculate your retirement expenses.
0:12.0	Plus, if you want to reduce your tax-deferred account balances,
0:16.0	does it make more sense to do Roth conversions or reinvest?
0:19.0	What about doing Roth conversions to a higher tax bracket
0:23.0	than the one you'll be in during retirement? Also, the fellows explained the alternative minimum tax,
0:28.6	how social security spousal benefits work, and when in the year you turn 72, you must take
0:34.9	required minimum distributions from your retirement accounts.
0:38.5	And finally, what should someone with no credit history who hasn't paid taxes do with a sudden $100,000 windfall?
0:46.4	I'm producer Andy Last, and here are the hosts of Your Money, Your Wealth, Joey Anderson, CFP, and Big Alclopine CPA.
0:54.3	All right, we got David from Huntsville, Alabama.
0:58.0	Hello, Big Al, Joe, Andy.
1:00.0	Have a few questions about forecasting expenses for retirement.
1:03.3	If you still have a decent time horizon, 10 years of my case before you retire,
1:07.5	how do you factor in reduced future spending into your plan? For example, my wife and I
1:13.6	spend just under $22,000 for principal and interest payments on our home that will be going away
1:18.7	in a few years. We also have other expenses for children, food, clothing, family premiums for
1:24.7	coverage for health care, dental vision, etc. All of those things will go away when we hit retirement.
1:29.9	How do you account for those things when thinking about planning?
1:34.0	Also, got episode 402, hell of an episode.
1:38.8	It was, I think.
	...

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